The redesigned Palisade Hybrid is a big, plush three-row SUV that feels upscale without being ostentatious, and it is thrifty on fuel.
The 2026 Hyundai Palisade Hybrid is one of those rare huge SUVs that makes no apologies for not being an Escalade or Yukon Denali. After seven days behind the wheel of this complete redesign, I just never got tired of it – driving in it, sitting in it, polishing it and admiring it in the driveway. That’s quite an endorsement for a three-row family hauler.
What’s new for 2026?
Introduced in the U.S. for the 2020 model year, the Palisade has become one of Hyundai’s most successful vehicles. American sales reached a record 123,921 units in 2025, and through September 2026 were running another 6.4 percent ahead of the previous year. Clearly, it’s doing well.
Engine/motor
The hybrid combines a turbocharged 2.5-liter four-cylinder engine with two electric motors, producing 329 horsepower and 339 pound-feet of torque. A six-speed automatic transmission delivers power to the front wheels or available all-wheel drive. Fuel economy is where it shines, as it should – an EPA-estimated 34 mpg combined in the most efficient front-wheel-drive configuration, while all-wheel-drive models achieve around 29 mpg combined. Pricing starts at $44,160 before destination charges.
Handsome Inside And Out
The new Palisade is a substantial-looking machine, with an upright, boxy profile, broad grille, striking vertical lighting elements and an almost architectural quality to its exterior. There’s a hint of Range Rover in its proportions, although Hyundai has developed a distinctive identity of its own. It’s nearly 200 inches long, and the increased dimensions translate into welcome interior space.
Inside
Every time I settled into the Palisade, I felt immediately comfortable. There’s something almost like a high-end office about it, and I mean that as a compliment. The surroundings are clean, soothing and beautifully coordinated. It’s plush without being coddling, upscale without being ostentatious.
But it’s at night where it truly shines. Soft ambient lighting illuminates various parts of the cabin, including lovely purple accents that give the interior an almost theatrical glow.
Dual 12.3-inch displays provide instrumentation and infotainment and physical controls remain available for many everyday functions. Depending on trim, buyers can enjoy Nappa leather, heated and ventilated seating, relaxation seats and a 14-speaker Bose audio system. Seven- and eight-passenger configurations are available.
How Does It Drive?
The hybrid delivers satisfying acceleration, smooth highway cruising and a generally quiet, composed ride. There’s enough power to merge confidently into fast-moving traffic, while the suspension does an admirable job of insulating occupants from rough pavement.
It’s not a sports car, nor does it pretend to be. Instead, the Palisade excels at making everyday driving feel effortless.
Room for improvement
My biggest complaint concerns the peculiar gear selector, a tiny twisting stalk tucked behind the steering wheel, with the engine start button incorporated into its end. It’s awkward to locate, unintuitive to operate and particularly frustrating when executing a quick three-point turn. In situations requiring rapid changes between Drive and Reverse, I want a control I can find and operate without thinking about it. This isn’t one. It also beeps your head off, which is good on one level, but without identifying what you’re doing wrong, it’s just a beep.
The automatic braking system also puzzled me. On one occasion, it abruptly stopped the vehicle while I was reversing out of my driveway, apparently mistaking the curb for an obstacle. Yet in another situation involving a vehicle ahead, I didn’t experience the intervention I’d expected.
Despite those complaints, I thoroughly enjoyed my week with the Palisade Hybrid. Its comfort, refinement, handsome styling and extraordinarily welcoming interior outweigh its ergonomic eccentricities.
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